OIL & G A S SPECIAL SEC TION
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Meeting in the Middle Renewables, oil and gas make for a one-two punch in Alaska’s energy sector By Arie Henry
60 | May 2021
n January, when the Biden administration announced its ban on the future sale of oil and gas leases on federal land, the news understandably ruffled the collective feathers of Alaska’s oil and gas industry. The announcement could be—and has often been—framed as a direct attack on one form of energy development in favor of another. But a closer look at insights from parties in both the oil and gas and renewable energy sectors reveals that as far as Alaska is concerned, the two energy industries aren’t necessarily at odds. In fact, many industry experts agree that oil, natural gas, solar, hydro, geothermal, and tidal can all be developed in Alaska without one encroaching on the other’s economic importance to the state. Combined, petroleum and renewables are a positive one-two punch for Alaskans, not ideologically opposed platforms locked in some industrial grudge-match. There are similarities between oil and gas and green energy as well as differences—all of which are necessary for the dynamic relationship to work in the first place.
Different Uses, Different Users A misconception exists that implies fossil fuels and renewables are like oil and water (no pun intended). While it might be true elsewhere, this isn’t necessarily the case in Alaska. However, as the new presidential administration begins to establish domestic energy policies focused on more investments in green energy and less in federal lands for oil and gas use, the fear of Alaska’s petroleum sector being severely stifled has caused some headaches for industry stakeholders. But for all the hype surrounding the green energy and fossil fuel debate, both platforms exist in the state to serve different functions; while oil and gas continue to bring in state revenue through royalties and a tax structure (not to mention money for Permanent Fund Dividends), green energy serves to keep more money in individual, utilitypaying Alaskans’ pockets via energy efficiency savings. Less use of traditional energy sources like diesel (especially in rural Alaska) and more reliance on platforms like solar and wind mean lower longterm costs for consumers.
Alaska Business www.akbizmag.com
